1. Field of the Invention
The present invention is generally related to a computer for balancing a checkbook and more particularly, to a simplified system for balancing a checkbook in which it is not necessary for a user to enter each checking account transaction.
2. Discussion of the Background
Checkbook balancing, also called a bank reconciliation, is an agreement between two independent records (a checkbook and the bank's statement) as to the amount of money in an account at a given point in time, usually at month end. Normally, a monthend statement will be received within 10 days into the new month and should be balanced as soon as practicable to update the checkbook balance for bank charges and credits and to catch any errors that may have occurred in the checkbook or in bank transactions.
Bank statements are normally divided into three sections. First, a summary section is provided to show the overall status of the account, i.e., the beginning balance (also the last month's ending balance), total deposits and credits, total checks and debits, and the ending balance.
Second, the detailed section lists by date (the bank's entry date) each check/debit made, and each deposit/credit made to arrive at the ending balance. A relatively new third section provided for the account holder's benefit lists in numerical sequence, each check paid, with asterisks or other indicators showing breaks in the numerical sequence.
Each break may or may not indicate an unpaid check needed for balancing purposes. Other causes of breaks in the check sequence include a cancelled or voided check, an alteration in the sequence of checks used (i.e., using a new packet of checks out of sequence with prior ones), and particularly at the beginning of the listing, payment of a check written in a prior month followed by a check written in the current month. It is important to determine the cause of each break in numerical sequence since unpaid checks must become part of the balancing process.
A number of computerized accounting systems are available to consumers and commercial institutions. However, the systems are not intended simply for balancing a checkbook, but are full accounting or bookkeeping systems. These types of systems are available in software packages for use on personal computers. A popular accounting system for use on personal computers is "QUICKEN" by Intuit. However, a system such as QUICKEN requires a user to enter each check which has been written, each deposit, and all other transactions affecting the account in question. While these systems are beneficial to businesses which need computer records of all transactions and for certain individuals who desire a bookkeeping system to keep track of each transaction, the systems are not convenient for ordinary people.
For example, many checks are written by consumers during the normal course of the day (i.e., while they are away from home). It is therefore inconvenient for these people to write checks during the day and at the end of a day, enter all checks written, deposits, ATM transactions, etc. into a computer.
As an alternative, Siwla, U.S. Pat. No. 4,222,109, discloses an electronic checkbook which allows a user to keep track of checkbook transactions electronically, by a microprocessor system which is part of the checkbook. However, this system also requires a user to enter each transaction into the checkbook and these types of systems do not provide an easy method of balancing a checkbook. Additionally, many people do not completely trust computers to store important information and a user of the Siwla system would often keep a paper record of each checkbook transaction.